Use the Information for the Question(s)below

question 39

Essay

Use the information for the question(s)below.
Joe just inherited the family business,and having no desire to run the family business,he has decided to sell it to an entrepreneur.In exchange for the family business,Joe has been offered an immediate payment of $100,000.Joe will also receive payments of $50,000 in one year,$50,000 in two years,and $75,000 in three years.The current market rate of interest for Joe is 6%.
-In terms of present value,how much will Joe receive for selling the family business?

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Definitions:

E-commerce Site

An online platform that facilitates the buying and selling of goods and services through electronic systems like the internet.

Online Marketplace

A digital platform where vendors can sell their goods or services directly to consumers over the internet.

Third Parties

External entities or individuals that are not directly involved in a transaction or contract between two principal parties but may play a role in the arrangement, such as suppliers, intermediaries, or partners.

Total Landed Cost

The total cost of a product that includes the costs of purchasing, freight, insurance, and other costs up to the port of destination.